14. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn; how will the supply of ethanol, the demand for ethanol, as well as its equilibrium price and quantity, be affected by the following event: Development of new genetically engineered bacteria that can efficiently convert high cellulose biomass (grasses, wood chips, etc.) into ethanol.b) Demand will increase. j) Equilibrium Price and Quantity will remain unchanged. g) Equilibrium Quantity will decrease. c) Demand will decrease. d) Supply will increase. f) Equilibrium Quantity will increase. e) Supply will decrease. h) Equilibrium Price will increase. i) Equilibrium Price will decrease. a) To the extent the amount of ethanol additive in gasoline is determined by 10 government fiat, neither demand for not supply of ethanol will be affected unless the government changes its requirements. Course Content - 1724.121110E X A03 NOTES Supply and Demand XH Take Test: A03 Test – 1724.12111 XChanges in Market Equilibrium- X +->8 https://ctccs.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id%3D 298550 1&course_id%3D_137861_¥ Question Completion Status:) EquilIbrIuM Pice WIII decrease.QUESTION 1414. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured inthe U.S. is made from corn; how will the supply of ethanol, the demand for ethanol, as well as its equilibrium price and quantity, be affected by thefollowing event: Development of new genetically engineered bacteria that can efficiently convert high cellulose biomass (grasses, wood chips, etc.) intoethanol.b) Demand will increase.j) Equilibrium Price and Quantity will remain unchanged.g) Equilibrium Quantity will decrease.C) Demand will decrease.d) Supply will increase.) Equilibrium Quantity will increase.e) Supply will decrease.h) Equilibrium Price will increase.i) Equilibrium Price will decrease.a) To the extent the amount of ethanol additive in gasoline is determined by government fiat, neither demand for not supply of ethanol will beaffected unless the government changes its requirements.QUESTION 15Click Save and Submit to save and submit. Click Save All Answers to save all answers.Save Al AnsversCicse2 Type here to search

Demand:Demand is the desire of an individual ability and willingness to pay for a product. The…

Answered: 14. Given that the U.S. government…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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14. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in the U.S. is made from corn; how will the supply of ethanol, the demand for ethanol, as well as its equilibrium price and quantity, be affected by the following event: Development of new genetically engineered bacteria that can efficiently convert high cellulose biomass (grasses, wood chips, etc.) into ethanol.

b) Demand will increase.

j) Equilibrium Price and Quantity will remain unchanged.

g) Equilibrium Quantity will decrease.

c) Demand will decrease.

d) Supply will increase.

f) Equilibrium Quantity will increase.

e) Supply will decrease.

h) Equilibrium Price will increase.

i) Equilibrium Price will decrease.

a) To the extent the amount of ethanol additive in gasoline is determined by 10 government fiat, neither demand for not supply of ethanol will be affected unless the government changes its requirements.

Course Content - 1724.121110E X A03 NOTES Supply and Demand X
H Take Test: A03 Test – 1724.12111 X
Changes in Market Equilibrium- X +
->
8 https://ctccs.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id%3D 298550 1&course_id%3D_137861_
¥ Question Completion Status:
) EquilIbrIuM Pice WIII decrease.
QUESTION 14
14. Given that the U.S. government mandates the use of ethanol as a partial substitute for gasoline (10% by volume), and that ethanol manufactured in
the U.S. is made from corn; how will the supply of ethanol, the demand for ethanol, as well as its equilibrium price and quantity, be affected by the
following event: Development of new genetically engineered bacteria that can efficiently convert high cellulose biomass (grasses, wood chips, etc.) into
ethanol.
b) Demand will increase.
j) Equilibrium Price and Quantity will remain unchanged.
g) Equilibrium Quantity will decrease.
C) Demand will decrease.
d) Supply will increase.
) Equilibrium Quantity will increase.
e) Supply will decrease.
h) Equilibrium Price will increase.
i) Equilibrium Price will decrease.
a) To the extent the amount of ethanol additive in gasoline is determined by government fiat, neither demand for not supply of ethanol will be
affected unless the government changes its requirements.
QUESTION 15
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Save Al Ansvers
Cicse
2 Type here to search

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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